Domestic benchmark equity indices closed in the green on Wednesday as the buying was seen in PSU bank and realty sectors. The investors are keenly watching the Reserve Bank of India's (RBI) monetary policy committee (MPC) meeting which will announce its decision around the repo rate on Friday.
The banking stocks rose amid volatile sessions in the market, given the possibility of cash reserve ratio (CRR) cut by the central bank. The Sensex settled 80,956.3 as it rose 110.58 points or 0.14 per cent, the Nifty closed at 24,467.45, marking a gain of 10.30 points or 0.04 per cent.
Banking stocks boosted with the hope of reduced CRR. The bank Nifty index surged about 1 percent with the PSU Banking Index outperformed its private sector peers, as investors turned optimist before RBI monetary policy meeting announcement.
The broader market front, the Nifty Midcap 100 closed at 58,112.40, which was higher by 603.40 points, or 1.05 per cent. The Nifty SmallCap 100 closed at 19,173.55, higher by 170 points, or 0.89 per cent.
The domestic market had an upward trend, with a few fluctuations that resulted from mixed Asian markets as news of South Korea made way into Asian markets and gave some mixed sentiments.
"Wider indices were doing great, and the banking and finance sectors continued to be strong. Auto stocks suffered as sales results in November were mixed. The speech by the FED Chair might shift the mood of the market, as recent FED minutes indicate confidence in easing inflation," they added.
On the sectoral front, PSU Bank, Realty, Financial Service, IT, Media, Private Bank, and PSE closed in green while Nifty Auto, Pharma, FMCG, Metal, Energy, and Infra closed in red.
HDFC Bank (NS:HDBK), NTPC (NS:NTPC), Bajaj Finserv (NS:BJFS), Titan (NS:TITN), TCS (NS:TCS), Tech Mahindra (NS:TEML), and Bajaj Finance (NS:BJFN) were the top stocks in the Sensex. Bharti Airtel (NS:BRTI), Tata Motors (NS:TAMO), Power Grid (NS:PGRD), Maruti (NS:MRTI), Reliance (NS:RELI), and ITC (NS:ITC) were the maximum losers.
On the Bombay Stock Exchange (BSE), 2,383 shares were traded in green and 1,582 in red. While, 105 shares remained unchanged.
LKP Securities' Rupak De said that Nifty remained choppy throughout the day as investors remained cautious ahead of RBI's monetary policy announcement.
"A decisive move above 24,700 could lead to continuation of its upward momentum. Conversely, a fall below 24,350 could weaken market sentiment," he added.
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